11.09.09

What is oppertunity cost and what is the figure usually put on it?

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11.09.09

Opertunity cost is the cost of missing out on the next best oportunity when making a decision.

The usual way to work this out is using theinterest rate.I.E. the cost of missing out on the interest avaiable from money held in a deposit account.EVERY business decision has a cost (in money, time or other resources) and must be weighed up with care.